Question

The trial balance of Concord Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year. CONCORD FASHION CENTER Trial Balance November 30, 2020 Debit Credit Cash $ 21,000 Accounts Receivable 28,200 Inventory 44,900 Supplies 6,200 Equipment 135,000 Accumulated Depreciation—Equipment $ 30,000 Notes Payable 51,000 Accounts Payable 57,000 Owner’s Capital 88,500 Owner’s Drawings 10,000 Sales Revenue 755,200 Sales Returns and Allowances 8,600 Cost of Goods Sold 497,400 Salaries and Wages Expense 140,000 Advertising Expense 24,500 Utilities Expense 13,700 Maintenance and Repairs Expense 11,900 Freight-out 16,500 Rent Expense 23,800   Totals $981,700 $981,700 Adjustment data: 1. Supplies on hand totaled $2,100. 2. Depreciation is $11,250 on the equipment. 3. Interest of $4,550 is accrued on notes payable at November 30. 4. Inventory actually on hand is $44,600.

Complete the worksheet.

THEN

Prepare a multiple-step income statement for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

THEN

Prepare an owner’s equity statement for the year.

THEN

Prepare a classified balance sheet as of November 30, 2019. Notes payable of $18,000 are due in January 2020. (List Current Assets in order of liquidity.)

THEN

Journalize the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

THEN

Journalize the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

THEN

Prepare a post-closing trial balance.

Answer 1

1.

Adjusting entries as follows:

Date	Account titles	Debit	Credit
Nov. 30	Supplies expense	$4,100
	Supplies ($6200-$2100)		$4,100
Nov. 30	Depreciation expense	$11,250
	Accumulated depreciation		$11,250
Nov. 30	Interest expense	$4,550
	Interest payable		$4,550

_____________________________________________________________________

Prepare Multiple-step income statement:

		Amount
Sales revenue	$755,200
Less: Sales returns & allowances	($8,600)
Net sales	$746,600
Less: COGS	($497,400)
Gross margin		$249,200
Less: Administrative and selling expenses:
Salaries and wage expense	$140,000
Advertising expense	$24,500
Utilities expense	$13,700
Maintenance expense	$11,900
Supplies expense	$4,100
freight out	$16,500
Rent expense	$23,800
Depreciation expense	$11,250
Interest expense	$4,550	$250,300
Net Loss		($1,100)

Statement of owners' equity
Beginning bal.	$88,500
Less: Loss	($1,100)
Less: Drawings	($10,000)
Ending bal.	$77,400

___________________________________________________________________

Prepare Closing entries as follows:

Date	Account titles	Debit	Credit
Nov. 30	Revenue	$746,600
	Income summary		$746,600
Nov. 30	Income summary	$747,700
	COGS		$497,400
	Salaries and wage expense		$140,000
	Advertising expense		$24,500
	Utilities expense		$13,700
	Maintenance expense		$11,900
	Supplies expense		$4,100
	freight out		$16,500
	Rent expense		$23,800
	Depreciation expense		$11,250
	Interest expense		$4,550
Nov. 30	Income summary	$1,100
	Retained earnings		$1,100